It now heads to the governor's desk in a time where college athletics are constantly changing.
A federal judge's decision is expected to pave the way for colleges to begin directly paying their athletes on July 1st.
Current laws in Texas would prevent that from happening.
According to the Texas Tribune, Texas' current laws allow outside entities, like national advertisers or athletic boosters, to pay student athletes, but prohibit universities from paying them directly.
They also reported last year the NCAA agreed to settle a case where they'd have to pay back 2.8 billion to D1 athletes who played for their schools since 2016. A judge is expected to approve the settlement, and that would allow schools to pay their student athletes directly under an annual 20.5 million revenue-sharing cap.
ABC13 spoke with State Representee Brandon Creighton, who is one of the sponsors of the bill. He says state law needs to change so Texas schools can receive money from the settlement.
"The way that this lawsuit works, is the universities would be, the universities would be the entities deploying the dollars eligible through the lawsuit. Unless we change the laws in Texas to modernize our NIL statue that's not very old, then we'd be out of bonds on participating in these settlement negotiations," Creighton said.
Creighton said that annual cap will be reevaluated every three years, so that 20.5 million could grow over time.
He does expect Texas Governor Greg Abbot to sign the bill and says the law would take effect immediately.
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